DISCOVERY OF OIL AT CHAK NAURANG SOUTH-1

By
the grace of Almighty Allah, Oil and Gas Development Company Limited has made
oil discovery in Lower Sakessar over Chak Naurang South-1 exploration well
located in District Chakwal, Punjab.

The structure of well was delineated,
drilled down to the depth of 3220 M targeting the Eocene reservoir of the sub
thrust sheet to test potential of “ lower Sakessar” formation. Significant
reserves of hydrocarbons have been found at Chak Naurang South-1.

The well initially produced 180 barrels
per day of crude oil with jet pump. This discovery will add hydrocarbon
reserves of the company and joint venture partners.

The above is being provided to you in
compliance with the requirement of Clause No. (XX) of the Code of Corporate
Governance.